Manulife Investment sees scope for overseas flows to return to India

Marc Franklin, Deputy Head of Multi-Asset Solutions, Asia at Manulife Investment Management, remains constructive on Indian equities. He notes that there is potential for renewed investor interest and a return of overseas capital flows into the market.Franklin said, “Foreign investors are taking a fresh look at India again, not just for the constructs of the economy and markets being somewhat more domestically oriented. But the recognition that positioning, particularly amongst foreign investors, is somewhat lighter now than it was six months ago and therefore there is the potential for a re-engagement and for overseas flows to come back into the market.”

However, he added, “We do recognise that we have to be somewhat price sensitive, given that valuation multiples never really got that discounted, both relative to history, but also relative to other markets as well.”

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Marc Franklin stated that their global market strategy currently follows a barbell approach, with a more diversified equity portfolio than in previous months. On one end, they are focusing on markets trading at a discount to their fundamentals but offering strong total return potential through both capital appreciation and income.UK large-cap stocks, with attractive valuations and solid dividend yields, are a key example—seen as appealing despite challenges in the domestic UK economy. Asian equities also fit their profile.

On the other end of the barbell, the focus remains on high-quality businesses with strong franchise value and thematic growth potential. Sectors like cybersecurity and defence technology, though trading at premium valuations, are seen as long-term growth opportunities.

These are expected to deliver consistent earnings growth, which Franklin believes the market will eventually reward. The overall strategy blends value opportunities with structural growth themes for balanced exposure.

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